Crude Futures Near Six Year Low; Market Looks to Genscape Cushing Storage Data for Insight & Transparency

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Industry experts from Genscape, RBN Energy, and EMI delve into Cushing trends and market impacts in live panel discussion on Feb 11

Given the current rate at which Cushing inventory is building...maximum operational levels could be reached by late spring.

With crude futures nearing a six year low following Genscape’s recent Cushing inventory report, and national crude stockpiles at an 80 year high, market participants seek clarity in U.S. storage trends. (Reuters, Jan 29, 2015; MarketWatch, Jan 29, 2015). Cushing, Oklahoma, the world’s largest storage hub, has become the focal point for crude traders and a key factor in understanding WTI movements.

“Stocks at Cushing, OK have officially pushed capacity utilization past the 50 percent mark after another 2 million barrel build the week ending January 23,” according to Genscape’s Brian Busch. “With the 12-month WTI contract spread approaching $10/bbl, barrels are flooding to Cushing in every way possible, including rail.”

As of January 28, 2015, Genscape reports that eleven trains have unloaded at the EOG - Stroud rail terminal since the beginning of the year, sending over 750,000 barrels of Bakken crude to Cushing via EOG's 90,000 bpd Hawthorn pipeline.

“Given the current rate at which Cushing inventory is building, primarily based on storage plays by merchant traders because of double-digit contango, maximum operational levels could be reached by late spring,” Busch continues. “When that happens, those volumes will have to re-enter the refinery supply market, or find another home for storage in PADD III.”

Genscape will be hosting a live panel discussion and presentation with guest speakers, Rusty Braziel from RBN Energy and Dominick Chirichella from EMI, on February 11, 2015 to elaborate on the trends seen at Cushing and the increasing market relevance of this crucial hub. Registration is available at info.genscape.com/cushing-trends-2015.

Delivered every Monday and Thursday at 10am ET, Genscape's Cushing inventory reports have become the industry standard for the most important crude trading hub in the world. Genscape storage data is derived from proprietary measurement techniques that provide highly accurate volumes and include granularity down to the individual tank level. These reports also include detailed information on maintenance and in-construction tank capacity. Free trials of the Cushing Storage Report are available here: info.genscape.com/cushing-trial-0115

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Jaimie Weiss
Genscape, Inc.
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